Lifetime mortgages
Lifetime mortgages or Home Equity Release Schemes, involve the taking out of a mortgage secured against the value of your main home.
There are no monthly repayments and interest is rolled up over the life of the loan and repaid upon leaving for long-term care or death, at which point the property could be sold to ensure the lender is repaid.
Interest can be fixed or capped. One aspect is that the loan can increase as interest is added over time to greater than the value of the property, although SHIP's member schemes offer a "no-negative-equity" guarantee. We only deal with lenders who are members of SHIP ( Safe Home Income Plans ).
As you will need to be over age 55 for this type of mortgage, we find that most clients simply need a higher level of retirement income. The beauty of Lifetime Mortgages is that you can have a regualr monthly payment from the lender rather than or as well as, a one-off lump-sum amount.
The benefit of a regular monthly income is that the outstanding loan accrues at a much slower pace, generally leaving more to be left to your heirs.